Real estate agent Eric Elegado, 47, and his wife Charmagne, 47, – a former account executive at New Century Mortgage – were sentenced to 41 months each in prison for the scheme that ended in more than $10 million in bank losses, according to U.S. Attorney Laura Duffy.

Prosecutors said that starting in 2005 and continuing until early 2007, the Elegados worked with seven co-conspirators to secure $50 million in home loans for unqualified buyers by falsifying their job and salary information on loan applications.

Getting the loans primarily through New Century Mortgage, the Elegados said their co-conspirators were paid about $500 for allowing their companies to be fraudulently listed on a buyer’s loan application.

They also created false documents like W-2s, pay stubs and bank statements to submit to mortgage lenders like Charmagne.

The Elegados were getting at least $40,000 a month in commissions, while they got loans that exceeded the sales prices and profited from the extras.

With that illegal cash, they bankrolled a lavish lifestyle, Duffy said, including expensive houses, cars, watches and clothing – all the while living a double life as respected community leaders and philanthropists.

Their crumbling scheme led to scores of foreclosures during the U.S. financial meltdown in the mid-2000s.

Duffy called this kind of mortgage fraud a long-lasting, devastating crime to the San Diego real estate market, which have ramifications across the nation’s economy.

The Elegados will return to court on May 27 for a restitution hearing, at which time the couple will surrender to the Bureau of Prisons. The government is expected to seek more than $10 million in restitution from them.